Export and Import - Research Paper Example

? Export and Import Export and Import Most important cultural determinants in making decisions Globalization is one aspect thathas enhanced the import and export business across the globe. Many countries are realizing the advantages of establishing export and import business in strengthening their economies. However, there are some cultural determinants that are considered important before starting the export and import business in a country. For example, there are some cultural aspects that should be considered before starting the export and import business in the United States. First, the United States of America has a culture of incepting clearly stated regulations in the import and export business. This is one consideration that businesses should highlight before starting a business. The culture of instating clear regulations has been in the United States for a long time. This is done to ensure the safety of all the citizens of the country. Therefore, a business that will not consider such regulations is likely to flop. For example, the United States has clear regulations on any imports that pose a threat to the environment (Manresa, 2010). This is a culture that has been developed to ensure the nation does not pose environmental threats to its citizens. Apparently, the issue of globalization has enhanced the regulations that are deemed to limit the influence on the environment. In the previous years, the regulations on imports were not stringent, which was an easy task for importers and exporters. As such, there is a need to take a closer reflection on these regulations before embarking on the import and export business. Culture of a country determines the way of life of the citizens. Therefore, this is likely to affect the import and export business as it is likely to affect the demand of supply of the products in the country (Cook, 2012). For example, the issue of junk foods is prevalent in the United States. This is an issue that has caused uproar between concerned parties especially in regard to health concerns. It is estimated that many young citizens of the country have health issues which emanate from the consumption of junk foods. These are fast foods that are consumed frequently in the United States. Some of the health issues include obesity and heart related conditions. In order to reduce such instances, there is a dreaded reduction on the production of such foods. This would be a setback to businesses that would wish to import and export foodstuff. Lastly, there is the culture of consumption of particular products. This should also be considered since the demand market will affect the business. Governmental, compliance management, and security requirements There are various institutions that are put in place to deal with the import and export business in the United States. These are institutions that ensure the business is conducted in a legal and safe manner (Manresa, 2010). First, there is the Border Compliance Assistance Center which is instrumental in regulating transport of products on the United States’ border. This is a body that is obligated to safeguard any products that are transported to the United States with special focus on solid and hazardous wastes. The United States is focused on reducing entry of waste materials into the country as this will cause environmental threats. Any business that wishes to transport products from the border into the United States has to comply with the regulations that are highlighted by the Border Compliance Assistance Center. Similarly, this is an instrumental center where businesses gather information regarding transport from other places, which includes Mexico. Secondly, a business that would wish to import products into the United States has to comply with the Code of Federal Regulations (Weiss, 2011). These are the stated regulations that should be adhered to before starting any importation and exportation business in the United States. Compliance with the regulations requires massive preparation since they restrict some imports into the country. However, if a business feels it is up to the task of adhering to the regulation, then it is destined to record better results in the business. Thirdly, there is a need to look at the Environmental Protection Authority, which is a government body that regulates imports and exports in the United States. The EPA has a variety of laws that are incepted to regulate the imports and exports which could pose a risk to human life. The regulations are also incepted to ensure the environment is protected. The EPA also works with other government agencies which ensure there is full compliance with the laws that govern imports and exports in the country (Weiss, 2011). For example, a business has to focus on the various compliance agencies which deal with variety of imports and exports. These include agencies that deal with chemical substances, pesticides, food products, vehicles and machinery, hazardous wastes and scrap metal. Lastly, importation of food products is governed by a number of regulations which include Federal Food, Drug and Cosmetic Act, Federal Meat Inspection Act and Poultry Products Inspection Act. This helps in ensuring the food products that are imported and exported to the country are safe for human consumption. Steps to take to initiate export and import activities in this country The first step to take in initiating an export and import business is to conduct a research on the businesses that are in the country (Cook, 2012). This is the initial step in finding a viable business that would be profitable. For example, a business should research on the demand and supply information of the project. Supplying a product that is in high demand will be a viable project. However, a business should not consider a product that is not highly demanded, especially when the suppliers are plenty. The second step to take is to focus on the requirements. All businesses have different requirements depending on the instated governing bodies. For example, the governing acts instated by governing bodies have to control the business in a legal and elaborate manner (Manresa, 2010). Under such circumstances, a business should focus on the attainability of the requirements and the costs. Apparently, all businesses that are considered legal should have all the stated requirements. Therefore, if the requirements are readily available, then the business will be attainable. For example, a business that would wish to deal with exportation and importation of food products will have to conform to the requirements that are incepted by the Federal Food, Drug and Cosmetic Act. Thirdly, a business should evaluate on the risks that are connected to the business. A business that has numerous risks poses a threat to continuity. When a risk occurs, the business will be halted since some of the vital aspects of the business will be affected. Therefore, there are various steps that should be considered in connection to risks. First, a business has to evaluate any risks that are associated with the trade. A business should only consider a risk when the benefits outweigh the costs. This will ensure the business gains a substantial amount in its activities. Secondly, a business should be in a position to limit any unnecessary risk. This will ensure the business is stable and continuously imports and exports products. Some of the unnecessary risks pose danger to the business as it could stall at any time. Thirdly, a business should manage and anticipate risks through planning. When a business has concrete plans to eradicate any risk, it is prepared to make the best out of its trade. As such, the business will have to gain more when it starts its trade. Lastly, a business has to evaluate its preparedness in starting the business. For example, it has to reconsider all the requirements in starting the business. This will be followed by contacting all agencies and government bodies that are concerned with governing the business (Manresa, 2010). After this, the business will have to assess all risks in the trade any plan on how to limit the risks. This will be wrapped up by initiating the business after planning on the execution, transport chains and deliver of the consignments, imports and exports. Recommendations There are several recommendations that would be worthwhile in the business of importing and exporting products in a country. First, the business has to fully assess the risks before indulging in any trade. Some businesses have unforeseen risks, which include political instability. Therefore, it is recommended that a business should focus on such risks to ensure continuity. The second recommendation is that a business should focus on a trade that is continuous. For example, demand for some products is reducing due to enhancement in technology. Therefore, a business that would wish to have continuity should have an exclusive research on products that have constant demand. The third recommendation is that a business should reduce any operational costs to have higher revenue. This is by managing any risks that could occur (Weiss, 2011). Similarly, a business should use auditors in ensuring the company is complying with regulations. This will enhance the legality of the business as unscrupulous deals will be noticed. Though there is a need for auditing, the business should limit compliance fees in order to reduce expenditure budget. Lastly, there is need for a business to consider any future exposure to risks. This is by focusing on any future expectations in the business. When a business focuses on planning for future expectations, it is likely to notice any bizarre incidences that could occur. As such, the business will be prepared to deal with such issues and avoid any further expenses that would be incurred. With such recommendations, a business is likely to make positive impact in the importation and exportation business. Similarly, it will enhance continuity as the business will have adhered to all the regulations and requirements that are stated by government agencies. References Cook, T. (2012). Mastering import & export management. New York, NY: AMACOM Div American Mgmt Assn. Manresa, M. (2010). How to open and operate a financially successful import export business: With companion CD-ROM. New York: Atlantic Publishing Company. Weiss, K. D. (2011). Building an import / export business. 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